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The most secured and durable investment is real estate property.History has proven that although real estate prices may havefluctuated from time to time, over the long-term real estateproperty has appreciated in value. The security for a mortgage isreal estate property. Private mortgages provide a regular income stream, tangiblesecurity and a real return to the investor that is superior to bankdeposit, GICs and bonds. There are many reasons why these investments are so highly soughtafter, which include the following: 1.Low Administration Costs: Each of us who have had a mortgage knowhow long it takes to pay this debt off. The Banks know this aswell. The borrower is required to pay the costs to have themortgage registered against title to their property. The Banksimply sits back and goes about cashing the monthly payment foryears without incurring any further cost whatsoever. 2.Cash-Flow: A mortgage generates cash each and every month.Obviously the amount of the monthly payment will depend on the sizeof the mortgage, the interest rate and amortization period. Howeverthe payment comes in each month if the borrower does not want toloose their home. The fact is that the mortgage payment will be thelast payment not made by someone in financial difficulty, and ifbankruptcy occurs, a mortgage holder s security is not affectedby the borrower declaring bankruptcy. Interested in Investing in Asian Real Estate Contact Linda Johnson, Business Development Director Private Client Group, Heffernan Capital Management Singapore 3 Raffles Place #07-01 Bharat Building Singapore 048617 Tel: +65 6329 6408 Fax: +65 6329 9699 3.Protected Capital: Perhaps the main reason why Banks lovemortgages, and why they fight tooth and nail with each other forthis business, is the low risk associated with these investments.Obviously the risk associated with a first mortgage is less thanthe risk associated with a second mortgage, but than again thereturn from holding a second mortgage is substantially greater. For the first several years the mortgage is outstanding, almost allof the payment is applied to interest. The capital is protected bythe value of the real estate against which the mortgage isregistered, and the value of the mortgage is not affected by theups and downs of the stock market. Our RRSP mortgage gives a minimum of 10% Yield Rate of ReturnSecured by a First Mortgage on a Real Property in Asia. At a rate of 10% yield rate of return, your RRSP portfolio shoulddouble in value every 7 years according to the rule of 72. Private mortgages can be a great investment, since there is greatsecurity with the equity on real property. Even if a debtorreneges, the property can be used to help pay off the mortgage. It is also an easy investment to make private mortgages requirelittle baby-sitting or watching of an investment. Money is paidregularly and the lender is fully covered by the legal documentssigned at the time of the mortgage, ensuring that the investment aswell as a profit is collected. Since private mortgages are so good for investors, many think thatthey do not offer a great deal for property owners, but this is notalways the case. Property owners turn to private mortgages for manyreasons. Not all private mortgages are high interest some dooffer good rates. In some cases, property owners turn to privatemortgages if they simply are a very poor credit risk and cannot getfinancing elsewhere and then switch to a non-private mortgagewith better rates as one s financial status improves. Finally,there are usually no greater risks with private mortgages than withother types the same legal documents are used to protect thelender. Contact the Author Share Us. I am an expert from irinteractivewhiteboard.com, while we provides the quality product, such as Educational Anatomy Models , China Multimedia Podium Lectern, IR Interactive Whiteboard,and more.
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